Interesting article about Oil

wanghong

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/ C: Y) v" e; x4 U5 J2 m* X  T8 [Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
. ~9 X( A% ^6 w4 @* B* q9 E: vthese oil producer will go bankrupt or out of the business even if
; J1 {% ]1 k% ^: |; l' Xcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

9 c! q# _$ c$ n7 r1 }Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.

  t# e' C) r5 W* S4 ^( ^
/ n0 ^  Q8 L8 K  b1 `: |! z. [There are several reasons the price of oil is decreasing in the face
* _; ~6 D5 z7 j% }of so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
% ?6 u* O! n2 W, h5 Fbeing used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
# m( U& p. L% `" s' A' kfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
' C$ C" [7 s1 f, }racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
% w3 Q  [' d$ K  p% H" P* scattle, turkey and chicken processing plant will soon sell their fat
9 O% s/ ^+ d  k. ]; U2 Tto bio-diesel producers. One pork processing plant in Oklahoma is
/ m9 L# I0 M/ D  Q3 T# T" Jproducing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
) I' t! Q: l$ @/ s$ }- j$ Yexpected to be built in the future. Much of the energy they produce
2 ]6 K( ]7 V3 H. [+ y6 Nwill replace oil.
, P& g) f, Q3 `) f& B* U, `3 f. P
7 H( @' e8 C: U+ P, u5 N) y
0 w5 u& c- s; l% X7. Every company in any form of transportaion business is replacing
3 i0 b. p  [- C: \9 @older equipment such as trucks, airplanes, train engines, ships, etc.
. e4 i4 X4 I* i. Owith new more fuel efficient equipment. Airlines and railway companies
7 v" H% P3 @# Z/ eare experiencing 20% to 25% better fuel econony with the new
equipment.
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6 K  R" G: W! j  cAirlines are flying airplanes with bio-fuel. They are finding the bio-
* F9 {4 F) k7 g9 J" Kfuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
4 I8 S! p1 A5 \7 S/ Voil.


4 x+ \) q) D6 ?! S$ g9. Coal is being transformed into a clean burning liquid fuel. The CO2
/ p0 p2 e0 k" Q( m" u$ \* W7 W2 V+ Vproduced as a byproduct is sold to oil companies for injection into
oil wells.


2 F( d& i* }8 z2 s3 E; H& T) ]5 @10. Solar, wind and ocean energy is displacing oil as an energy
7 l/ _" t0 P/ ?source. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
! m9 v( [4 {% p' c- a1 S" h8 ]price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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With the above scenario, I still believe that there are under
/ r; e) {: u3 `performed OIL companies and probably they are yet to get the justified
+ o) I% Z2 Y% t0 K/ evalue .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


The above articles are from WSJ .............PUBLISHED ON 9TH JAN
0 T( S4 m( Z* H% M6 y2 p$ n2009 ... FYI-Only